Cineworld files the reorganization plan with the US Bankruptcy Court

After announcing on April 3 that it had reached a conditional agreement with lenders to emerge from Chapter 11, Regal owner Cineworld today filed its restructuring plan with the U.S. Bankruptcy Court for the Southern District of Texas.

In a filing with the London Stock Exchange, where its shares trade, the stock market giant reiterated that it expects to emerge from Chapter 11 cases in the first half of 2023. The group also said they remain committed to getting there “as soon as possible”. although any sales transaction may delay it beyond the first semester, among other things.

On 3 April the group announced that it had received non-binding offers for some or all of its assets, but had decided that in the absence of a cash offer that would significantly exceed the value set under the proposed restructuring, it would cease is looking for a buyer for its businesses in the US, UK and Ireland. The chain will continue to review proposals coming in for its “rest of the world” business, he said at the time.

The restructuring plan is supported by lenders that own and control approximately 83% of the Group’s term loans maturing in 2025 and 2026 and the revolving credit facility maturing in 2023, and approximately 69% of the outstanding receivables under the receivables financing facility.

The plan, which is subject to bankruptcy court approval, includes a proposed reorganization of the group’s Chapter 11 businesses. Among other things, certain creditor approvals must be obtained before the bankruptcy court can confirm the plan.

In addition, according to the April 3 statement, given the amount of existing debt to be discharged under the plan, the proposed reorganization does not provide any refund to holders of Cinemaworld’s existing equity interests.

During the restructuring process, Cineworld will continue its global activities and cinemas as usual without interruption. The group will continue to respect the terms of all existing customer membership programs, he said.

In the April 3 statement, Cineworld CEO Mooky Greidinger called the restructuring agreement “a vote of confidence in our company” that “significantly advances Cineworld in executing its long-term strategy in a changing entertainment environment. With a growing number of blockbusters and audiences returning to theaters, Cineworld is poised to continue to offer moviegoers the most immersive cinematic experiences and to maintain its position as the ‘Best Place to Watch a Movie’.”

Cineworld filed for bankruptcy in a Texas court last fall. This allowed Regal to close theaters and renegotiate leases with landlords. In late March, Judge Marvin Isgur said he was sticking to an April 20 date to discuss the plan and set May 26 as the confirmation date.